1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed.

Saved Help Save & Exit Check Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.8 hrs. @ $12.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $20.00 21.60 33.30 $74.90 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 23,000 Depreciation Machinery 71,000 Taxes and insurance 17,000 Supervision 253,500 Total fixed overhead costs Total overhead costs $135,000 364,500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 317,200 233,700 Direct materials (61,000 Ibs. @ $5.20 per lb.) Direct labor (19,000 hrs. @ $12.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,250 176,800 17,250 34,500 23,000 95,850 15,300 253,500 657,450 $1,208,350 Required information Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs + IIIIIII Fixed overhead costs Total overhead costs